The oil market was bashed lower Friday and then leaped again last night as the big news was a successful outcome to Iranian nuclear negotiations with provision to lift the oil embargo. It is trading at $57.83 as I write. All sides are claiming victory for their respective domestic audiences but it appears a deal is done:
- US fact sheet
- Iran disputes fact sheet
- more
- Israel unhappy
- but not as annoyed as extreme neocon Greg Sheridan.
This is an excellent deal for the Western and Arab worlds. It ensures lower oil prices for longer to boost growth, will keep the pressure on Russia and at worst delay Iranian nuclear ambitions, as well as boosting the prospects of evolving Iran into a co-operative international state while also holding back a regional arms race. It will very much aid the reconstruction effort in Iraq and in that way help deter the advance of Islamic State.